How AI Buying Assistants Change Retail Product Selection

The retail sector is increasingly relying on the attracting assistants supported by more artificial intelligence. These new technologies are used directly to determine which products of customers will see and evaluate. But how much effect is there for incomes and product presentation from this?

A research published in ArXiv was designed to answer this question. The study examines the entire process from the selection of the product catalog of retailers to the creation of the customer list of AI intermediary:

• Product catalog management: Retailers decide which products will hold in the system
• AI tool: Artificial intelligence decides to choose a short list that will be available to the customer -Customer behaviour: Buyers choose from the list offered by many nomial logit models -Two types of vehicles: The specific ranking (deterministic) or options based on the fixed segment are reviewed
• Gelir optimization: The research reveals economic differences between two systems

The study shows that AI can increase the satisfaction by offering personalized recommendations to customers on one hand, on the other hand, retailers can influence their income. Deterministic mediation models create a more dynamic and flexible environment while providing consistent results.

This research is critical to understand how e-commerce and physical stores can integrate AI decisions strategically. Retailers can now see that assistants are reflected directly to their success to check their selection decisions.